The year 2014 has seen the successful issuance of government bonds inboth domestic and foreign markets, said the Vietnam Economic News.
Capital resources raised through this channel have significantlycontributed to increasing public investments, maintaining stableeconomic growth and strengthening Vietnam’s position in theinternational market, according to the Vietnam Economic News.
In lateNovember, the Vietnam State Treasury for the second time adjusted theannual plan for government bond issuance in 2014, increasing the totalamount of bonds by 30 trillion VND, from 232 trillion VND to 262trillion VND.
In August, the treasury, for the first time, decided toincrease the total amount of bonds by 22 trillion VND. These adjustmentshave led to a decrease in the amount of short-term bonds and aconsiderable increase in the amount of long-term bonds, especially10-15-year bonds.
Specifically, the adjusted amount ofless-than-one-year bonds is 26 trillion VND (under the initial plan,this was 40 trillion VND); the amount of two-year bonds decreased from55 trillion VND to 34 trillion VND; and three-year bonds from 65trillion VND to 61 trillion VND. Meanwhile, the amount of five-yearbonds increased from 67 trillion VND to 80 trillion VND; 10-year bondsfrom 10 trillion VND to 41 trillion VND; and 15-year bonds from 5trillion VND to 20 trillion VND.
In the opinion of economists, theseadjustments go in line with the new strategy for raising capital throughgovernment bonds, which focuses on the issuance of long-term bonds tohelp the state balance revenue and expenditure and take the initiativein final settlements. According to the Ministry of Finance, in November,the Vietnam Trade Treasury successfully organised bidding sessions forover 7.38 trillion VND worth of government bonds.
From the beginning of2014 until November 24, the total amount of capital raised through theissuance of government bonds reached 228.8 trillion VND, equal to 76.9percent of the plan for making up state budget overspending ondevelopment investment in 2014. The year 2014 has also seen successfulresults Vietnam achieved in issuing international bonds.
InNovember, the Ministry of Finance successfully issued 10-year governmentbonds totally worth 1 billion USD in the international capital market,with an annual interest rate of 4.8 percent, lower than the initiallyplanned rate of over 5.12 percent.
The Ministry ofFinance said this successful issuance of international bonds had helpedthe Vietnamese economy save about 32.5 million USD of government bondinterest payment for 10 years. At the same time, it has allowed the swapof 54.4 percent of the original value of international bonds issued in2005 and 25.4 percent of the original value of international bondsissued in 2010, bringing Vietnam total benefit of 13.9 million USD.
The Ministry of Finance affirmed that long-termgovernment bonds continued to attract the attention of domestic andforeign investors. This will help Vietnam raise capital to make upstate budget overspending on development investment and restructurepublic debts in the direction of extending loans and reducing the debtpayment pressure in accordance with the government’s guidance.
To ensurestate budget balance in 2015 as well as the effective use of capitalresources raised through government bonds, the Ministry of Planning andInvestment recently asked relevant authorities to review the plans onusing capital resources raised via government bonds.
Capital resourcesraised from the issuance of government bonds will also be used to paydebts related to infrastructure projects, focusing on projects whichhave been completed and put into use, and projects which face a littlecapital shortage to be completed in 2015 or 2016.
The Ministry ofPlanning and Investment affirmed that in 2015, government bonds will beused to finance official development assistance (ODA)projects/programmes which will receive reciprocal capital from the statebudget of Vietnam.
The Ministry of Transport will givepriority to important, urgent projects such as Nhat Tan Bridge and theroad connecting the Noi Bai International Airport to Nhat Tan Bridge,the Cat Linh-Ha Dong Urban Railway Project, the Da Nang-Quang NgaiExpressway Development Project, and the Ben Luc-Long Thanh ExpresswayProject.-VNA
Capital resources raised through this channel have significantlycontributed to increasing public investments, maintaining stableeconomic growth and strengthening Vietnam’s position in theinternational market, according to the Vietnam Economic News.
In lateNovember, the Vietnam State Treasury for the second time adjusted theannual plan for government bond issuance in 2014, increasing the totalamount of bonds by 30 trillion VND, from 232 trillion VND to 262trillion VND.
In August, the treasury, for the first time, decided toincrease the total amount of bonds by 22 trillion VND. These adjustmentshave led to a decrease in the amount of short-term bonds and aconsiderable increase in the amount of long-term bonds, especially10-15-year bonds.
Specifically, the adjusted amount ofless-than-one-year bonds is 26 trillion VND (under the initial plan,this was 40 trillion VND); the amount of two-year bonds decreased from55 trillion VND to 34 trillion VND; and three-year bonds from 65trillion VND to 61 trillion VND. Meanwhile, the amount of five-yearbonds increased from 67 trillion VND to 80 trillion VND; 10-year bondsfrom 10 trillion VND to 41 trillion VND; and 15-year bonds from 5trillion VND to 20 trillion VND.
In the opinion of economists, theseadjustments go in line with the new strategy for raising capital throughgovernment bonds, which focuses on the issuance of long-term bonds tohelp the state balance revenue and expenditure and take the initiativein final settlements. According to the Ministry of Finance, in November,the Vietnam Trade Treasury successfully organised bidding sessions forover 7.38 trillion VND worth of government bonds.
From the beginning of2014 until November 24, the total amount of capital raised through theissuance of government bonds reached 228.8 trillion VND, equal to 76.9percent of the plan for making up state budget overspending ondevelopment investment in 2014. The year 2014 has also seen successfulresults Vietnam achieved in issuing international bonds.
InNovember, the Ministry of Finance successfully issued 10-year governmentbonds totally worth 1 billion USD in the international capital market,with an annual interest rate of 4.8 percent, lower than the initiallyplanned rate of over 5.12 percent.
The Ministry ofFinance said this successful issuance of international bonds had helpedthe Vietnamese economy save about 32.5 million USD of government bondinterest payment for 10 years. At the same time, it has allowed the swapof 54.4 percent of the original value of international bonds issued in2005 and 25.4 percent of the original value of international bondsissued in 2010, bringing Vietnam total benefit of 13.9 million USD.
The Ministry of Finance affirmed that long-termgovernment bonds continued to attract the attention of domestic andforeign investors. This will help Vietnam raise capital to make upstate budget overspending on development investment and restructurepublic debts in the direction of extending loans and reducing the debtpayment pressure in accordance with the government’s guidance.
To ensurestate budget balance in 2015 as well as the effective use of capitalresources raised through government bonds, the Ministry of Planning andInvestment recently asked relevant authorities to review the plans onusing capital resources raised via government bonds.
Capital resourcesraised from the issuance of government bonds will also be used to paydebts related to infrastructure projects, focusing on projects whichhave been completed and put into use, and projects which face a littlecapital shortage to be completed in 2015 or 2016.
The Ministry ofPlanning and Investment affirmed that in 2015, government bonds will beused to finance official development assistance (ODA)projects/programmes which will receive reciprocal capital from the statebudget of Vietnam.
The Ministry of Transport will givepriority to important, urgent projects such as Nhat Tan Bridge and theroad connecting the Noi Bai International Airport to Nhat Tan Bridge,the Cat Linh-Ha Dong Urban Railway Project, the Da Nang-Quang NgaiExpressway Development Project, and the Ben Luc-Long Thanh ExpresswayProject.-VNA
